Note 4 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

4. INCOME TAXES

The effective tax rate for the

three

-month period ended

June 30, 2018

decreased to (

1.7

)% compared to

32.1%

for the same period in

2017

mainly due to income tax benefits from the Recapitalization, due to accelerated vesting of restricted stock and settlement of options of

$1.1

million, and the reduction in the corporate tax rate from

35%

to

21%

due to the Tax Act that was enacted on

December 22, 2017.

In addition, the Company had increased tax benefits of

$558,000

from the exercise of options and dividends paid to non-vested shareholders partially offset by

$70,000

additional tax expense from non-deductible Recapitalization expenses.  The effective tax rate for the

six

-month period ended

June 30, 2018

decreased to

9.1%

compared to

33.5%

for the same period in

2017.

The effective tax rate was lower mainly due to income tax benefits from the Recapitalization and the reduction in the corporate tax rate from

35%

to

21%

due to the Tax Act. In addition, the Company had increased tax benefits of

$908,000

from the exercise of options and dividends paid to non-vested shareholders partially offset by

$137,000

additional tax expense from non-deductible Recapitalization expenses.